Digital Currency Group (DCG) has initiated a lawsuit against its subsidiary Genesis, a crypto lender, over a $1.1 billion loan. The legal action follows Genesis's earlier lawsuit against DCG, seeking $3.1 billion in damages, alleging that DCG made fraudulent transfers during its collapse in 2022. DCG argues that the loan issued to Genesis was sufficient to cover losses incurred and that Genesis has actually profited since its collapse due to the increase in value of collateral, including Grayscale Bitcoin Trust shares and assets recovered from Three Arrows Capital. In its lawsuit, DCG claims that because of the appreciation in cryptocurrency values, Genesis no longer has any debts, effectively making the outstanding obligation on the promissory note null. The ongoing legal battle signifies the complexities faced by entities within the crypto space during times of market distress and recovery.

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